The Reserve Bank of India on Friday withdrew ₹2,000 currency notes from circulation stating that it will keep on being a legal tender. The existing notes in circulation could either be deposited in bank accounts and/ or exchanged by September 30, the RBI said in a statement.
RBI said, it has been observed that ₹2000 denomination is not commonly used for transactions. The stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.
Unlike the November 2016 shock demonetization when withdrawal of legal tender status of all ₹500 and ₹1000 notes that were invalidated overnight, but ₹ 2000 notes will continue to be a legal tender till September 30. However, RBI did not specify the limit for depositing the ₹2000 currency notes in bank accounts. But one person can exchange maximum of ₹ 20,000 (10 notes of ₹2000) for will be allowed at a time.
₹2000 was introduced in November 2016 under sections 24(1)of RBI Act, 1934, primarily to meet the currency requirements of the economy after withdrawal of legal tender status of all ₹500and ₹1000 notes in circulation at that time. The move comes amid concerns of the highest denomination notes being used to hoard black money. RBI stopped the printing of ₹2000 in 2018-19 and it rarely in circulation.
